Despite big bumps in rents, Memphis International Airport will cut total costs for its airlines by $3.9 million in fiscal year 2015.

The Memphis-Shelby County Airport Authority is expected to vote Thursday on a $124.4 million operations and maintenance budget that includes a 68 percent increase in terminal rates and an 11 percent decrease in landing fees.

The increase in rates, from $86.31 per square foot last year to $144.78 this year, is a result of Delta Air Lines Inc. reducing its rented space after stripping Memphis of its "hub" status, according to a release today by the MSCAA.

“This budget is another step toward reinventing the Memphis International Airport, as we transition from being a Delta hub to an origin and destination airport,” said Scott Brockman, president and CEO of MSCAA. “I am extremely proud of our team’s efforts to meet the challenges of this process, reduce overall costs and mitigate increases for our airline partners.”

Landing fees are also expected to fall to $1.29 per thousand pounds from $1.45 last year because of reduction in airport expenses and an increase of activity by FedEx, said MSCAA CFO Forrest Artz.

The airport's new budget shows a reduction in total MSCAA costs by $3 million. The MSCAA will cut personnel costs by about $1.1 million through attrition, operating costs at the Ground Transportation Center by $1.36 million, and maintenance and utility costs by $790,000.